Australia's central bank raised its key cash rate by 25 basis points
to 3.25 percent on Tuesday and heralded more to come, saying it was
safe to row-back on stimulus now that the worst danger for the economy
had passed.

The Australian dollar jumped to a 14-month high and interbank
futures slid as investors rushed to price in at least one more hike by
Christmas, and rates above 4 percent in a year.

Markets elsewhere in Asia also moved to factor in expectations for more hawkish central banks.